Commercial Lease Due Diligence in Real Estate Acquisitions: Key Issues and Best Practices
Buildout Obligations, Termination Rights, Purchase Options, Co-Tenancy, Rental Terms
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will prepare real estate counsel to evaluate lease provisions that may significantly affect commercial real estate purchasers. The panel will discuss the importance of tenant estoppels and provisions on tenant buildout, termination rights, expansion rights, purchase options, co-tenancy, "go dark," and other provisions.
- Lease review: economic terms
- Rental terms: percentage rent, rent abatement
- Allocation of taxes, insurance, maintenance, and other expenses between landlord and tenant
- Comparing tenant estoppels, leases, and rent roll; resolving inconsistencies
- Lease review and key legal provisions
- Tenant improvements, landlord obligations
- Use restrictions and noncompete provisions
- Renewal/expansion options
- Early termination clauses
- Purchase options and rights of first refusal
- Continued operation: "go dark" provisions
- Co-tenancy provisions
- Parking requirements
- Assignment and subletting
- Subordination, non-disturbance, and attornment
The panel will review these and other relevant issues:
- What are best practices for confirming the income and expenses of the property?
- What remaining tenant buildout and other obligations will the purchaser be taking on as successor landlord?
- Do any tenants have termination, purchase option, "go dark," or similar rights impacting the lease or the property's operation?
- Can the purchaser comply with all use restrictions, noncompete, co-tenancy, and parking requirements contained in the leases?
Hannah Dowd McPhelin
Ms. McPhelin concentrates her practice in real estate matters and other business transactions, including the... | Read More
Ms. McPhelin concentrates her practice in real estate matters and other business transactions, including the acquisition, sale and financing of commercial real estate properties and leasing of office, retail, warehouse and industrial space, representing both landlords and tenants. She is a LEED® (Leadership in Energy and Environmental Design) Accredited Professional and a member of the firm’s Sustainability, CleanTech and Climate Change Team.Close
Malinda R. Steeb
Ms. Steeb is an associate in the Real Estate Practice Group, resident in the Pittsburgh office.| Read More
Ms. Steeb is an associate in the Real Estate Practice Group, resident in the Pittsburgh office.Close